Local tax credit on Maryland return

Technical topics regarding tax preparation.
#1
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New Jersey
I'm a NJ preparer doing a Maryland resident return for a new client that had York, Pa. local tax withheld on W2. I'm struggling making heads or tails of how to properly reflect the York local tax on his Maryland return. It seems that Form 502CR is for other states, not necessarily localities. I use ProSeries if that helps. Any help would be appreciated, TYIA.
 

#2
sjrcpa  
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Maryland
The local tax credit is also computed on 502CR. You treat York PA taxable income and tax as if it was a state. I don't use ProSeries so can't help you there.
 

#3
novacpa  
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McLean, Virginia 22101
I practiced in York, PA (along time ago) and "audited" the York County Earned Income Tax Bureau.
They have "jurisdiction" to collect only from York County Residents - its know as a "wage tax"
earned in York County withheld by local employers.
Why would your "Maryland Resident" be subject to Pennsylvania wage tax?
Look into getting a refund - by reason of a withholding error.
 

#4
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York collected local tax because his office was located there.
 

#5
novacpa  
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McLean, Virginia 22101
In my view, the 1% wage tax should never have been paid to the York County Earned Income Tax Bureau -
compile the relevant tax documents - draft a letter asking for the return of the $$$.
 


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